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Monarch Gold enters Dominican Republic with stake in Toronto-listed Unigold

Unigold's main asset is the Neita concession, which hosts a deposit of over 2 million ounces of gold

Map of Dominican Republic
The Dominican Republic is known to be mining-friendly and hosts several mines

Monarch Gold Corp (CVE:MQR), the Quebec-focused mining firm, has moved into the Dominican Republic with the all-share acquisition of a 14.2% stake in explorer Unigold (CVE: UGD).

The latter's main asset is the Neita concession, which hosts a deposit of over 2 million ounces of the yellow metal. The inferred resource is 39.5 million tonnes at 1.59 g/t (grams per ton) gold.

Monarch has agreed to pay $0.115 for each of the 6.5 million shares for a total of $747,500 through issuing 3.25 million shares at $0.23 a pop.

READ: Monarch Gold Corporation is hoping for bright days ahead with Wasamac project

"This was an incredible opportunity for Monarch and a transaction that we could not pass up," Jean-Marc Lacoste, CEO of Monarch told investors. "Monarch has always been interested in acquiring undervalued assets with a view to developing their full value. With Unigold, we are acquiring a block of shares of a company with a resource of more than 2 million ounces of gold, at a fraction of the market price for such an asset, and with a strong shareholder base. In addition, this property has excellent high-grade exploration potential, as demonstrated by the 2015 resource estimate."

The Dominican Republic in the Caribbean is known to be mining-friendly and hosts several mines, including Pueblo Viejo, which is a Barrick-Newmont Goldcorp joint venture boasting a resource of over 10 million ounces of gold and production of almost 600,000 ounces a year.

In the last five years, Unigold has spent more than $20 million on exploration, including more than 50,000 metres of drilling that identified an inferred resource of over 2 million ounces of gold, as well as high-grade mineralized zones within the largest zones of disseminated mineralization.

Monarch already owns close to 300 sq km of gold properties in the Abitibi mining camp , including its Wasamac deposit, which has a measured and indicated resource of 2.6 million ounces of gold,  the Beaufor mine, the Croinor Gold, McKenzie Break and Swanson advanced projects, the Camflo and Beacon mills, as well as five promising exploration projects.

It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.

Contact Giles at [email protected]

Follow him on Twitter@Gile74

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TSX:MQR
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